"Korean Battery Companies Consider Establishing Lithium Processing Plant in Chile... Potential for Cathode Material Exports to the US"

Bloomberg Cites Chile Investment Agency
"POSCO Holdings, SK On, LG Chem Interested"

On the 19th (local time), Bloomberg reported that Korean battery companies are considering establishing lithium processing plants in Chile, the world's largest lithium reserve country, and have held related discussions with local investment agencies.

[Image source=AFP Yonhap News]

According to the report, InvestChile, Chile's foreign investment promotion agency, recently met with representatives of several Korean battery companies, who expressed interest in building lithium plants in Chile.

Karla Flores, Executive Director of InvestChile, stated that Korean companies showed interest in processing Chile's vast semi-processed lithium into materials such as lithium iron phosphate for rechargeable batteries to supply the U.S. market. She added that Korea could "potentially export lithium cathode materials to the U.S. through such projects."

The Korean companies mentioned by Executive Director Flores include POSCO Holdings, SK On, and LG Chem. Bloomberg reported that POSCO Holdings and LG Chem are reviewing investments in several regions including Chile, while SK On is closely monitoring Chile. Bloomberg also noted that all three companies responded that no decisions have been made yet.

Lithium is a key mineral used in batteries for electric vehicles, mobile phones, and laptops. Chile is the world's number one lithium reserve country and, along with Argentina and Bolivia, is part of the so-called "Lithium Triangle." The lithium reserves in these three countries are known to account for 60% of the global total.

However, about 70% of the world's lithium refining processes are handled in China. If Korean companies establish lithium processing plants in Chile, they could not only seize business opportunities at the center of lithium production but also reduce dependence on China.

This content was produced with the assistance of AI translation services.